Requires companies aided by loans under Mitchell-Lama to notify tenants of such housing of the possibility of buyout from mortgages held which would potentially result in rent increases not later than twelve months prior to proposed dissolution; provides such notice shall inform tenants of the nature of the action, the date intended, the applicable laws and a summary of the potential consequences including expenses and rent increases which may be charged; requires the commissioner or supervising agency to prepare a report to be made available to the tenants of the project.
S T A T E O F N E W Y O R K
________________________________________________________________________
1553
2025-2026 Regular Sessions
I N A S S E M B L Y
January 10, 2025
___________
Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Housing
AN ACT to amend the private housing finance law, in relation to notifi-
cation of tenants of pending "buy out" from mortgages by Mitchell-Lama
building owners
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 35 of the private housing finance law is amended by
adding three new subdivisions 5, 6 and 7 to read as follows:
5. (A) ANY COMPANY WHICH INTENDS TO DISSOLVE OR OTHERWISE TAKE ANY
ACTION WHICH WOULD CAUSE THE COMPANY TO NO LONGER BE SUBJECT TO SUPER-
VISION OF THE COMMISSIONER OR THE SUPERVISING AGENCY SHALL PROVIDE TO
EVERY PERSON THAT CURRENTLY HAS A LEASE FOR HOUSING IN THE PROJECT OF
SUCH COMPANY, NOTICE NOT LESS THAN TWELVE MONTHS PRIOR TO THE ANTIC-
IPATED DATE OF SUCH ACTION CONTAINING THE FOLLOWING INFORMATION IN PLAIN
LANGUAGE:
(I) THE NATURE OF THE ACTION WHICH THE COMPANY INTENDS TO TAKE;
(II) THE DATE ON WHICH SUCH ACTION IS ANTICIPATED TO TAKE PLACE;
(III) THE PROVISIONS OF LAW OR REGULATION PURSUANT TO WHICH SUCH
ACTION IS AUTHORIZED; AND
(IV) A SUMMARY OF THE POTENTIAL CONSEQUENCES OF SUCH ACTION, INCLUD-
ING, BUT NOT LIMITED TO, ITS EFFECT ON THE FOLLOWING:
(1) OWNERSHIP OF THE PROJECT;
(2) SUPERVISION OF THE PROJECT;
(3) EXPENSES OF THE PROJECT, WHICH SHALL INCLUDE BUT NOT BE LIMITED TO
TAXES AND OTHER MUNICIPAL CHARGES;
(4) RENTS; AND
(5) ANY GOVERNMENTAL APPROVALS OR AUTHORIZATION, IF ANY, NECESSARY FOR
SUCH ACTION TO OCCUR, INCLUDING INFORMATION SETTING FORTH THE GOVERN-
MENTAL BODY THAT WOULD NEED TO ISSUE SUCH APPROVAL OR AUTHORIZATION AND
THE DATES BY WHICH SUCH APPROVAL OR AUTHORIZATION WOULD BE REQUIRED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04464-01-5
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